David Schlesinger, Reuters editor-in-chief and prospective head of Editorial when Reuters and Thomson merge, noted a simple truth in a conference call with Reuters staff on November 16: “Reuters America has a contract with The Newspaper Guild that will be honored … The contract is the contract and remains in force.” He also mentioned our “succession clause,” which says that our contract’s provisions stay in force no matter what company we become. It’s right there on page 62. And while it sounds like legalese, it’s a key component of our deal.

Here’s the succession clause in its entirety, from Article XXII, Section 1 of the contract:

“Except as otherwise expressly provided herein, this Agreement shall commence on the Ratification Date, March 8, 2006, and expire on February 28, 2009 and shall inure to the benefit of and be binding upon the successors and assigns of Reuters.” (We’ve added the italics for emphasis.)

Assurances from Schlesinger alone may bring little comfort to those worried about job security in the merged company. But we also have history on our side. Over the years, “successors and assigns” clauses like ours have made labor agreements binding on new owners or entities of companies that changed hands in stock sales like the Thomson-Reuters deal. According to our legal advice, there’s no reason our contract should fare any differently.

And under the contract itself, it is important to remember the employment security protection it offers. Editorial and other non-Technical employees who joined Reuters before 1996, Technicians who joined Reuters before 1988 and Controllers and other miscellaneous Technical employees who joined Reuters before 1991 cannot be forced out of their jobs. If jobs are being cut, however, employment-protected employees may take voluntary buyouts in order of seniority.

Another point to consider is that there may be no merger until April 2008 or later. Schlesinger acknowledged as much in his teleconference. This deal needs to clear regulatory hurdles at the U.S. Justice Department and in the European Union, and the EU clearance isn’t expected until January or February. Schlesinger said the deal will close 60 days after this clearance. So if the clearance comes in January, the merger – really an acquisition – would close in March. If it happens in February, the deal will be in April. If it’s later than that, well, you can do the math. It probably won’t be done by the end of the first quarter of 2008.

More time is a good thing, from an employee perspective. The longer it takes, the more information we should have to consider all our options.

And even after the deal closes, it’s likely to take a while to figure out who will go where and do what. Schlesinger – remember, he’s going to be running Editorial in the merged Thomson-Reuters – said Editorial staffing would be based on “strategic needs”. Here’s how he put it: “You look first of all at what you have. Then you look at what you need and what you want to be … It’s not a simple formula. It has to be strategically led.”

Schlesinger was optimistic about the fate of Reuters Editorial when it joins with Thomson. But he said the “big places where money’s going to be saved” include technology, along with real estate and support services like HR, finance and the staff at the London headquarters of Reuters. He did not define technology, so we don’t know whether he meant the technological systems or the people who work with them. He did say System 77 needs to be replaced and that technological investments would be made.

Technical managers have not commented on the pending merger in meetings with staff.

The Reuters Alliance – a group of union leaders that includes Reuters Unit Chair Debby Zabarenko – has a teleconference scheduled with Schlesinger, global HR chief Mark Sandham and others on Thursday. Stay tuned.